KLA-Tencor Corporation (NASDAQ: KLAC) shares rose in value on Monday February 13 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile U.S. stock-market indexes opened higher on Monday, setting intraday all-time highs shortly after market open. The S&P 500 SPX, +0.35% opened up 6 points, or 0.2%, at 2,322.
The Nasdaq Composite COMP, +0.44% began the session up 18 points, or 0.3% higher at 5,752. The Dow Jones Industrial Average DJIA, +0.51% added 64 points or 0.3%, to 20,340 at the open.
Analysts at Vetr Inc. upgraded shares of KLA-Tencor Corporation (NASDAQ: KLAC) from Hold to Buy today. The company currently has a rating of Buy on the stock. The one-year price target of $86.67 is a decrease compared to the opening price of $86.80, resulting a fair amount of other analysts to issue statements on the stock recently. Looking back over the last 52 weeks, KLA-Tencor Corporation stock has a high of $88.12. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.
Shares of KLA-Tencor Corporation (NASDAQ: KLAC) opened at $86.80 yesterday trading between $86.72 and $87.48, and last traded at $87.12, a jump of $0.48 compared to the previous closing price.
KLA-Tencor Corporation (NASDAQ: KLAC) now has a market cap of 13.65B.
KLA-Tencor Corporation (NASDAQ: KLAC) Average Daily Trading Volume
95,131 shares crossed the trading desk yesterday, 52 percent lower than normal, out of a total float 156,191,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
KLA-Tencor Corporation (NASDAQ: KLAC) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, KLA-Tencor Corporation (NASDAQ: KLAC) now has a 50-day MA of $82.55 and 200-day MA of $75.90. It has traded in a 52-week range between $62.89 – 88.120 and today’s last price is 1.13%% lower than the 52 week high of $88.12.
Earnings growth is an important factor to consider when buying stocks and investors identify companies that have been successful at growing their earnings by at least 25% for the past 3 years.
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